Stock index futures dipped on Wednesday after the S&P 500 tallied its biggest gain in a month and ahead of another round of corporate earnings.
The benchmark S&P on Tuesday climbed 1.55 percent, its biggest percentage gain since March 13, after Coca-Cola Co
What we've seen lately is when we see one and a half percent moves here, up or down, the markets tend to take a pause the next day, as opposed to snapping back that one and a half percent the other way, said Keith Bliss, senior vice president at Cuttone & Co in New York.
According to Thomson Reuters data, 22 companies in the S&P 500 were expected to report results on Wednesday. Including American Express Co
Of the 39 S&P 500 companies reporting earnings before Tuesday's opening bell, 74.4 percent beat estimates.
International Business Machines Corp
If we get declining sales and revenue across the board in these companies that are reporting in the first quarter, then we really need to take a pause and try to figure out what the proper valuation for the stock market is, and I'm not sure the proper valuation is up at these levels right now, said Cuttone's Bliss.
S&P 500 futures fell 3.4 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 38 points, and Nasdaq 100 futures declined 9 points.
Diversified manufacturer Textron Inc
SXC Health Solutions Corp
Berkshire Hathaway Inc
European shares <.FTEU3> fell 0.6 percent as losses in utilities outweighed strength in miners. <.EU>
Asian shares rose as firm demand at a Spanish debt sale and positive corporate earnings boosted investor confidence in riskier assets.
(Reporting By Chuck Mikolajczak; editing by Jeffrey Benkoe)